If You Plan Of Buying One Of These Vehicles, You Might Want To Do It Now Before Taxes Trump Your Decision

If You Plan Of Buying One Of These Vehicles, You Might Want To Do It Now Before Taxes Trump Your Decision
Whether you’re in the market for a new truck, SUV or compact car, chances are at least one of your contenders appears on this list. In case you’ve been held up in a cement hole for the past week or so, US President Trump has proposed a 20 percent tax on all products made in Mexico that are imported to America.

Obviously the idea there is to dissuade American companies from sending jobs south of the border. We get that, but an additional 20 percent tax on a vehicle that’s already expensive will definitely hurt automakers, American or not.

1. Audi Q5
2. Chevrolet Silverado Crew Cab
3. Chevrolet Cruze Hatchback
4. Dodge Journey
5. Ram Promaster
6. Fiat 500
7. Ford Fiesta
8. Ford Fusion
9. Honda Fit
10. Honda HR-V
11. Infiniti QX30
12. Jeep Compass
13. Kia Forte
14. Lincoln MKZ
15. Mazda3
16. Nissan Sentra
17. Nissan Versa Note and Sedan
18. Nissan NV200
19. Toyota Yaris iA
20. Toyota Tacoma
21. Volkswagen Jetta
22. Volkswagen Golf
23. Volkswagen Tiguan

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TheSteveTheSteve - 1/30/2017 4:26:07 PM
+4 Boost
And to imagine, Americans once revolted *against* taxation.


MrEEMrEE - 1/30/2017 5:17:56 PM
+2 Boost
Nothing on that list is on my wish list. Not sure all are for the US market, like Tacoma that is also built in Texas.


HawkHawk - 1/30/2017 6:51:36 PM
+1 Boost
Total bullsheit.
Vehicle pricing is set by the competition. Presumably, each of these vehicle have to compete against similar class vehicles from other manufacturers. If they could have sold these vehicles at a 10-20% premium without losing share they would have already done so
If any of those vehicles were to get a price hike proportional to the border-wall tax or tariff, sales of those vehicles would sink through the floor.
Ergo, manufacturers will have to eat most or all of the border-wall tax..


TomMTomM - 1/30/2017 8:02:59 PM
+5 Boost
While your claim is interesting - I have yet to see a state change its Sales Tax Percentage - based on Competition (I would guess from other states).

However - the main problem is that many of the cheaper cars on that list CANNOT be made profitably in the USA. THis would give manufacturers with lower costs (Say Korea or China) quite a leg up in the market place and largely reduce the ability of manufacturers to actually move production of these vehicles to the USA.

Manufacturers will most certainly have to eat SOME of a possible tax initially- but I would also suspect that manufacturers will first make a decision whether the vehicles named sell in sufficient quantities to make them worthwhile to leave on the American Market - AND -

Manufacturers also have another option, IE - they can move the manufacturing of cars and trucks that we EXPORT to other markets currently from the USA to Mexico - and move the mexican manufacturing here. That will result in a net WASH for the manufacturers - but will not result in expanded production in the USA. -AND

Manufacturers have still another option - move the production of these cars to ANOTHER country (China, Korea - etc) that has low cost labor and import from there. THere is a limit to how many countries Trump could put a tax on without causing international problems.

THe problem is - almost no matter what happens - it will NOT end up that the "Tax" will be paid by Mexico - it still will be paid by American consumers - which is counter productive and not what Trump Promised. THe fact is - without Mexican cooperation - Mexico has enough "weapons" of their own that they can use against the USA to recoup any action Trump takes against them. They could add an equal tax against products from the USA - which would actually reduce jobs here - since Mexico can import from other countries to replace the USA product.


SanJoseDriverSanJoseDriver - 1/30/2017 9:14:05 PM
+4 Boost
Agree with Tom. This will likely end up creating a trade war and driving up prices for everyone while reducing jobs at the same time. Whenever you try to manipulate economic principles like free trade (or supply & demand), usually you get the exact opposite effect you were aiming for.


countguycountguy - 1/31/2017 12:33:06 PM
+3 Boost
It's a huge pointless cluster.


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